Life in a retirement village can seem ideal, with a wide range of facilities and on-site care catered to the older generation. But it is important to understand exactly what you are entitled to and how much you will be paying so that you can make the right decision for your future.
Retirement villages increasingly offer a variety of benefits for residents, including restaurants, swimming pools, gyms, spas, shops and hair salons as well as regular social activities.
They are designed as high-quality accommodation for people who are fairly independent, although some villages may offer personal care at an extra cost.
Retirement village benefits
They offer a strong sense of community, with areas set aside both inside and out for residents to gather together.
Maintenance is dealt with by the village management company, meaning the site should stay in good condition and residents do not have the hassle of arranging repairs or dealing with gardening or cleaning of the outside and shared areas.
It is a safe environment and residents do not have far to go to their facilities such as the pool or spa. The activities promote health and wellbeing as well as socialising with other residents.
For some, it means that they will be able to live independently in their own home for longer. Many retirement villages also have guest suites where visiting family and friends can stay.
Retirement village costs
All of the above will obviously come at a cost. The first expense is that a retirement village home is generally more expensive than an ordinary property. When selling, you will also be limited
as to whom you can sell to, with only a small pool of potential buyers.
Maintenance fees and service charges can be relatively high, depending on the services and facilities on offer. Where the management company is run by the freeholder or their agent, they may put charges up considerably over time.
It is preferable to have a management company run by the residents as charges are likely to be lower.
Other expenses such as Council tax and utility bills will not be covered by the service charges and will be payable in addition. Ground rent will also be payable annually.
The lease that you take on when buying a retirement home will usually stipulate that fees are payable when certain events take place, including selling, transferring or subletting the property.
Known as event fees, these are often calculated on the basis of a percentage of the sale price or market value of the property, which can mean a substantial bill. In some cases, the percentage will increase for every year you have lived in the property.
The conditions will also generally include restrictions on selling the property. For example, they may wish to vet the purchaser or require you to use their own in-house estate agency service, paying their set fee for this.
It is essential that you are fully aware of all of the implications, liabilities and costs before taking on a property in a retirement village. An expert property solicitor will be able to go through the lease and other documentation with you to ensure you are happy with all of the terms and conditions.
If you would like to speak to one of our property lawyers, ring us on 0333 305 5189 or email us at info@lpropertylawyers.co.uk
